To Redeem a Prime Property or Not

[g-gurl]

Let me begin by saying I'm feeling confused, angry and resentful right now. My dad mortgaged a prime property for P2M to finance his gambling habits. He was able to mortgaged it without the knowledge and consent of my martyr mom. He simply forged her signature. Second time nya na itong ginawa. Sa first transaction which happened 10 years ago, na-foreclosed ng bank ang property.

Fast forward, alam na ng mom ko ang nangyari. Being the martyr wife that she is, she simply accepted it and told me na kami nalang ni hubby ang mag-redeem ng property kase we have the financial resources to save the property -- kesa daw mapunta sa ibang tao.

Property is now considered Commercial ang classification. 1000 square meters here in gensan. loan amount is P2M plus interest which I dont have any idea. My husband is ok with redeeming the property for as long as it will be immediately transferred to our name. The property has lessees with rental of P15T/month.

Our cash on hand right now is P3M. We are both working. Our combined income is P150T with P30T monthly expenses. We have a home loan with pag-ibig na may P400T pa na balance. The 3M is our hard earned savings -- we were able to save this much through sheer pagtitipid and living within our means.

Your opinions and inputs would be very much appreciated.

[bluish_mommy]

^if i were in your situation, i will redeem it. make sure you secure yourself with legal documents, Deed of Absolute Sale with your parents signature, then have the title transferred agad agad sa names nyo ng husband mo.

[Msfi]

^^check first with the bank how much interest/penalty has the loan incurred so you would know if it is still less than the market value and if it still wise to redeem the property.  But a prime lot is always a good investment, and as sis g-gurl said, be sure that you get all the proper documents and that the property will be transferred to you and your husband's name.

[aquacharly]

Redeem. 
Negotiate for condonation or decrease  of extra charges -  to decrease the interest-on-interest.
Then Deed of Sale from your parents to you.

See if you can get a partial loan from the same bank once transferred to your name.  That is, if you decide to not significantly use up your 3mio savings.

There are many ways to earn off a commercial property, plus you have more than enough equity to purchase the property: so buy it. 

As for other properties:  why don't you have the TCTs annotated that he cannot sell/mortgage the property without your additional consent in writing.   Kaya pa nya to forge your signature??   Get all TCT Owners' Duplicates from him.  Every month -- check mo if he requests for. Replacement Owner's Duplicate. That way alam mo he is up to no good again. 

[Girltalker2]

^ ya on top of redeeming, make sure your dad does not get his hands on any of your cash or property, kasama na dyan sa iredeem mo at mga proceeds nyan.

[amethyst028]

redeem. ang pera lumiliit ang value due to inflation. yung 3M na hawak niyo if not invested well wil have a lower value in the next coming years. pero ang lupa tumataas ang value every year. and since may income na siya sure ka na may papasok na pera sa inyo.

[GABJUMZ]

Redeem the property sis. Actually, you can have it loaned sa bank if you don't want to spend your hard earned savings.

Check mo sa bank how much ang total amount due and negotiate kung pwede ma-condone ang penalties. Sabi mo may passive income ang property which is P15K monthly? Say the monthly amortization for 5 years ng loan worth P2.3M (example P300K for interest) for 6% interest is P45K monthly so monthly na dagdag mo na lang is P30K which is kaya pa rin ng sweldo nyo di ba? Yong part ng P3M nyo pwede mo gamitin para madevelop yong place at magkaron ka pa ang other income generating opportunities.

[agape]

I also have a similar problem, baka others have suggestions on what I should do.
Lot property is still under the names of my grandparents but they are deceased.
Lot taxes are updated and still under Lolo/Lola's names. There's a problem pa with the Title.
It should be inherited and transfered to my dad, aunt and 2 uncles as legal children and heirs.
But we need money to do that like taxes and redemption.

If I pay, I am asking for my share na sana from that inheritance (I know they plan to sell it and turn it into cash for themselves to use it all up) but my AUNT disagrees, she only wants to reimburse me the exact amount in expenses to fix things, since I'm the only one working and with stable income.

I have been the breadwinner and worked to support them for more than 10 years kaya wala akong naipon to establish myself, that's why I want to get my share from that inheritance. And for the most part yung AUNT ko talaga ang 100% supported ko compared to my Dad, and Uncles.
I have already mentioned to them the Waiver of Rights to Inheritance, and me as Assignee.
If possible, it's better if one name, my name na lang ang nakalagay sa Title pag transfer.
I know I might need a Real Estate Lawyer for this case.

[aquacharly]

^pag loaned to a private person, pwede ba niya ma-foreclose yun?
pag loaned to a private person, annotated ba yun sa title as encumbrance?

. 

Yes. & as with banks -- there is a 1year Redemption Period for the borrower-owner.
May or may not be annotated, depends on the lender really. 

The thing with gamblers & gambling financiers -- oftentimes, the transaction is expressed as a sale & not a loan -- to circumvent the 1yr Redemption Period.  As in,  the loan, interest & deadline for repayment of loan plus interest is expressed in the agreement as a partial or full payment by the financier to the gambler-borrower.    Creative documentation, but still legal.  That's why it's said that lending to gamblers is a very lucrative business  -- coz gamblers are prone to quickly agreeing to disadvantageous terms and valuations.    Unlike banks that assess with a view towards being repaid, the gambling financier views repayment as a small probability.  Gambler  nga borrower eh & the decision to loan must be quick -- hence, the creativity & low valuations.   
The "advantage" with real estate transactions of gamblers with gambling financiers is that unlike banks, the gambling financier is after quick turn-overs so, these financiers are very open to quick redemption (since real estate properties are harder to unload, take more time & can be complicated as in if may tenants or co-owners who will challenge the sale).      Likewise, most make it easy for gambler-borrowers to redeem their real properties (after full payment of  amounts due, of course) coz the gambling financiers are confident babalik uli yang gambler for repeat business. 



ABOUT your case, AGAPE: 

Apparently, you want to profit  from saving the property for the heirs of your grandparents.  Nothing wrong with that -- it is but fair.   So, to make things very clear --  It may be best to discuss the matter with the heirs as a deal you should profit from since everybody will gain from it anyway.  ( "Inheritance share" technically, limits you to your share of your father's share --  it doesn't affect Dear Auntie. ).   Aba, kelangan, ma adjust their perspective that your funding moves them from earning zero on this property to earning something.   That should make them ALL amenable to  giving you a share of their inheritance from their parents/your grandparents. Hwag sila swapang, but be appreciative you can earn something for them.  Any other financier willing to take the risk will profit surely -- why discriminate against you? 

Settle the issue of your profit now, before you make your money work for everyone's benefit.
If you will nga naman expect more from them other than reimbursement later on, malamang nga you will be disappointed kasi it is very hard to collect on utang na loob, even if it is 10 years' worth and continuing to-date. (Kita mo nga, human nature at work -- your biggest 10yr beneficiary is the 1 opposing you -- si Dear Auntie).   

Why don't you make the heirs give you a portion of the property ownership in exchange for you delivering a free and clean TCT in their & YOUR  names?  Negotiate - you & all the heirs.  If you can now reasonably assess the sale value of the property -- you know how much ownership share you want - negotiate it with them.  When you work for the TCT transfer -- you can start with an Extrajudicial Settlement in which the heirs & your ownership shares are clearly enumerated.   That way, assured ka of getting your share of any sale (basta sa time of sale -- insist the buyer pays each of you with separate checks).  Or, get them to now sign an Agreement that when the TCT is in their names, it will be annotated to the effect that any future mortgage or sale must be approved by you in writing.  In the Agreement, you can all agree that you will be paid XX% of sale proceeds (puede nyo also say that your share of the sale will not go below XX amount -- equivalent to your total expenses).

This is the 2 approaches we did with some properties. It worked out with us, given our family dynamics.  There may be better legal ways for you, given your family dynamics. So best to consult a lawyer conversant with both inheritance & real estate cases.   

[agape]

Thanks @aquacharly.
When you said "expressed as a sale & not a loan" is the agreement verbal only or on paper?
is it already like a dead of sale instead of just a property loan contract? and notarized too?

We also have a property supposedly loaned by my lola/lola. The title is with the Lender, I think, we are not sure, and the lender does not want to show it or give it back to us. We checked the taxes it is updated and the tax declaration are still under my lola/lola's names. But the title needs to be reconstituted when the QC LRA/RD ay nasunog, the problem is we also don't have a copy of the title anymore, not sure if nasunog or nabaha or during our paglilipat ng bahay it got lost along the way. What we really need to do now is have the title reconstituted, but we don't know how to proceed.

[aquacharly]

Oooopz, sorry, just saw this now....


^. AGAPE, all real estate transactions (over 50thou, or 500thou? -- I can't recall since I deal only with properties over P5mio) --  MUST be in writing.  Whether it is a sale or a loan it must be in writing &  common-sense/best notarized.   That is a legal requirement, hindi puedeng  verbal lang.   

You have no loan documents, no TCT, taxes paid religiously, tax dec still in your deceased grandparents' name.
1st get a copy from the QC Land Registry & check if there is a Lis Pendens or mortgage/loan annotation on the TCT. If yes, you can request for a copy of the documents filed to create the annotation - doon nyo makita the loan terms.   (Best you "ask for the assistance" of an employee of the QC LRA  for you to quickly get your hands on a copy of the said documents.)

With or without a  lis pendens/loan annotation -- get a lawyer to file for reconstitution.  Since the TCT owners are deceased -- there will be a longer list of requirements for reconstitution.  Declare it lost.     Do this quietly --  so the "lender" is unaware.  Simultaneous to this -- the children of your grandparents must sign and file an Extrajudicial Settlement, and include that no-TCT-for-Reconstitution in the List of properties in the Extra/S?  (Warning:  the BIR will demand a big amount in taxes --  beyond the period for filing na kayo.).   Get a lawyer to sort it all out for you. 

Going back to the no-TCT -- pag transfer to the names of the heirs --  you will get a certificate of  clearance for taxes due on the property.  Tapos, with the new TCT - magkaka roon ng new tax dec.   Pabayaan nyo mag habol is lender, at sya mag prove may claim sya versus the property.   
Check mo din if the taxes were paid with the annotation it was paid by XXX though ORs still issued to your Lola's name.   Yan clear -- you must pay back to the XXX who paid the taxes.  Also,  it hints at a claim on the property -- claim, not ownership.

Teka, who is in possession of that property???  Who is using it???